Stellar Packaging Products’ controller, Robin Simmons, recently completed the direct materials and direct labor variance analyses for the current period. The direct materials price variance for plastic was unfavorable; the direct materials efficiency variance for plastic was favorable. In addition, the direct labor price variance was unfavorable; the direct labor efficiency variance was favorable.
Often variances occur simultaneously and provide insight regarding the performance for the period. Indicate one reason for each of two of these variances and ensure your explanation is interrelated, meaning the two events giving rise to the variance occurred simultaneously in a cause and effect manner.
For this discussion:
- Support your position.
- Select two peer posts and comment on the content of their posts. Does your selection differ from that of your peers? If so, how does that response contrast to your own?